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Where IT Workers Must Go Next (Or Integrators Will Do It For Them)

By | October 27, 2010, 8:17pm PDT

Summary: Big changes are coming to IT departments and IT professionals. Cloud solutions, mobile applications and support for an interconnected workforce will require very different skill sets for IT.

The nature of IT work in corporations has always been a changing lot. IT pros have had to learn one new programming language after another. They have had to migrate from batch systems to online/real-time systems to client-server systems to Web 1.0 software and Web 2.0 technologies.

But, look in the IT departments of large corporations today. Where are large numbers of IT workers doing? Many are supporting on-premise software. Some are working on their company’s website and a scarce few are developing really strategic custom applications.

At lunch the other day, I listened to a friend and very cool CIO tell me how he’s trying to change the culture of his IT staff. Previously, the IT team hated it when a new technology (e.g., iPad or iPhone 4) comes on the scene as they saw it as something else that they must support even though there is no budget to do so and they are already overtaxed with other responsibilities.

What my colleague is doing is instead telling his IT leaders to go buy four of these devices and do two things with them: 1) find out how to support these technologies and 2) identify some new strategic uses for these. He knows that change, even in IT departments, is still a change management challenge. As such, it needs attention if it is to occur. But he also knows that what we think of IT today is going to change dramatically very soon. The new IT will about cloud solutions and mobile technologies that deliver a whole new set of capabilities and possibilities for interconnected workers.

I relate all of this as Appirio has recently released the results of a great study on cloud adoption by large enterprises. A lot of what they discovered mirrors what I personally observed in a research study I did earlier this year on the same subject.

Some of the interesting statistics in their report are:

“59% say business agility was among their top 3 reasons to consider cloud solutions (vs. 47% for TCO reduction)

75%+ say cloud-to-cloud integration and better mobile access are important priorities (more than 80% still say security and manageability are priorities)

Only 4% have fully integrated their cloud applications with each other

Only 15% plan to execute future cloud projects using only internal resources”

(Source: Appirio, State of the Public Cloud: The Cloud Adopters’ Perspective, October 2010)

The implications of the above are interesting. IT departments will have a lot of work in front of them soon if they are to provide the kinds of solutions and integration required of them. They will need to be able to connect numerous cloud solutions together as well as connect these to on-premise applications and data stores. But, what could be more jarring will be their need to connect data from these various cloud solutions to numerous hand-held and portable Internet devices that employees, customers, suppliers and other systems constituencies will use to access tomorrow’s corporate data.

Do IT groups have to provide this cloud-to-cloud and cloud-to-mobile integration? In a word, Yes. For should they fail to do so, then newer integrators, like Appirio will fill the void. Re-read the statistics above for some sobering, contemplative analysis.

IT professionals have been an extraordinarily adaptive lot. This set of changes, as IT goes cloud and mobile, will really test the change capabilities of this profession. IT is entering an all-new ERA here and this change will be revolutionary not incremental.

To read the complete Appirio report, click here.

To read my report from this Spring, click here.

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Topics

Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

Disclosure

Brian Sommer

I am co-owner of TechVentive, Inc. The company has been engaged on numerous consulting engagements, often for technology firms, service firms and litigators. As a general rule, I do not write about current clients of TechVentive. Should that occur, I will note this in blogs. Readers should assume that I have had client relationships with many ERP and other technology providers. Some of these relationships may be quite small and short-lived while others more significant. One of TechVentive's business units publishes research reports about technology providers. As a result, this business receives small amounts of revenues from a wide variety of software firms, software buyers and others when they purchase copies of reports. Some firms do secure reprint rights to these reports. None of these purchases, individually, represents a significant amount of total revenue for me and the nature of it is hard to predict where it will come from. I also provide some marketing strategy and/or market segmentation work for software firms as I have developed a unique database that segments the largest 4000+ technology buyers in the world. Many technology firms periodically engage me for unique views into this database for future marketing campaigns. I do not blog about these efforts and do not blog about client firms while they are active clients unless some pressing news story erupts. If that event occurs, I will indicate any perceived or real conflict of interest. Occasionally, I will develop unique intellectual property pieces for technology or service providers. If I should blog about a vendor with whom I have recently developed a special information product, I will note this in a blog to avoid any appearance, real or unintended, of bias. For the most part, I have no investments in technology firms. While I've been offered friends and family stock and other inducements in the past, I have steadfastly refused these. I used to be a partner with Andersen Consulting and had no ownership stake in the firm for many years. I frequently refer to this in my blogs and do not hide my prior association with the company. I did purchase a few shares of Accenture and Cognizant stock in late - 2008. I have sold some of those positions in late 2009. Readers should assume that most software conferences that I write about involved some measure of fees waived and/or travel reimbursement. I do not charge vendors to attend these events nor will I accept payment for same. I do get reimbursed for many speaking engagements. I generally note at the end of blogs whether the vendor reimbursed me for travel expenses. Generally, this includes airfare and hotel. I do not request, receive nor accept travel perks such as first class airfare.

Biography

Brian Sommer

Brian is in a unique position to diagnosis the winners and the losers in technology and services. He was the longest running (10 years) and most senior director of Andersen Consulting's (now Accenture's) global Software Intelligence unit - a position that required him to pick the best possible software solutions for hundreds of clients globally. He advised the firm on ERP software market forecasts and helped establish manpower planning estimates by vendor for deployment globally.

Brian continues to remain close to technology buyers and sellers. When he left Andersen Consulting, he co-created a dot-com with blogger and former arch-enemy at Price Waterhouse, Vinnie Mirchandani. That firm helped broker efficient services contracts between software buyers and systems integrators. Since then, he's created TechVentive, Inc. - a company that helps technology firms better understand their markets - and Vital Analysis - the research and publishing arm of TechVentive.

Brian still travels the world and publishes an impressive number of articles, research reports and blog posts annually to help software and services buyers make better business decisions. He can be reached at: brian @ vitalanalysis.com

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The cloud isn't about dollars so start changing
p.hicks@... Updated - 1st Dec 2010
Good post Brian. My CIO is similarly supportive of testing emerging tech to get ready for mass adoption, rather than put out bush fires as 'the business' starts showing up in the doorstep with it.

For those who have seen it go wrong, your IT leaders were chasing the wrong goal. Cloud won't save you money. It will, eventually, set up your business to respond to the social and technological changes that are occurring rapidly. These trends represent a huge shift in economic activity and processes.

Cloud models are still being tested and refined, so faults are to be expected. As the services mature stability and flexibility will be achievable and your IT department will get onboard or go bust, either on it's own or with your lame duck business.
Windows 3.1 had plenty of faults and still created a boom in ICT expenditure because it matched the direction business was heading with technology and information.
First off, it's hard for me to swallow self-justifying studies.

Second, the "culture" of an IT staff has a direct correlation to CIO and management direction. I don't know of any IT staffers who resist change intentionally, at least not for very long before being let go. Most are simply bailing water with a fork, resigned to the fact that management will assign new projects to integrators rather than develop any in-house expertise. Knowing a new technology might get you an extra assignment to review the work of a consultant, but almost never a job actually leading a new initiative. That's the new reality.

When I started with my present employer, our group had twenty architects who were leading various technology projects. Now we have two left, and their jobs are basically to audit and rubber-stamp the work done by our integrators and outsource suppliers. To keep current, they get some time allocated for conferences, but no travel money so it's limited to things presented in our local area. Our management has wholeheartedly bought into the idea that anything developed in-house must be kludgey and expensive, while anything that comes from the outside must be the latest technology and super-cool. We routinely catch our integrators in misrepresentations and outright lies (and these are the big-name outfits) but somehow it all gets smoothed out at the executive dinners and golf outings. Many staffers like myself are relegated to the role of janitors, cleaning up other people's messes. It's hard to be seen as "innovative" in that role.
@terry flores

I have seen the same in many of the projects I'm involved in. Little work is every done to validate these entities actually adhere to the regulatory/compliance controls we require.

I have also seen many quotes come in ultra low with little detail and as you progress through contract and get into the details the actual work effort is significantly more.

Corporate america is gambling on their future and the US will lose yet another industry (see auto, factory, textile etc) IT workers for the most part are doing the tasks that as directed from the same people that are now glossing over the rules that make it expesive for IT to do their work. The cloud has some benefits but I'm wagering their will be a major data leakage / outage and executives will be left with their pants down.
I think the cloud will be a lot like ERP systems. Vendors claim savings that are never realized. In our experience quite the opposite. Rather than reducing headcount we had to add employees to support the system. What blows me away is we are now effectively the vendors QA department flushing out bugs for which WE MUST PAY TO FIX and waiting weeks or months for fixes.
"What my colleague is doing is instead telling his IT leaders to go buy four of these devices and do two things with them" ... That is the funniest thing I have read in years! The guy was telling you this after a couple of margaritas, right? Or that company is a dream with a heck of a lot of money to throw around compared to most outfits.

Yeah, that's a good joke.
0 Votes
+ -
i'll be waiting for the next leak
Lamini Updated - 28th Oct 2010
yup, im going to the cloud, and trust all my data to someone I dont know. increase ROI, lower costs, increase efficiency by 23405%, ... easy to use. However, once you start reading into it you start seeing holes, incompleteness, lack of just about anything realistic. the marketing team has now called themselves marketing engineers. you'll notice this by the phone number to sales, but no number for engineering, which is usually outsourced. People forgetting the core of engineering and numbing it down to cosmetics
The same panic happened with off-shore programmers, I've seen several companies try them and find they are not qualified to do bug fixes let along actual code implementation. It was all marketed to people who don't have a clue, luckily the company I work for has experienced engineers in the top management so they saw through the B.S. after a short trial and hired real talent.

Same thing with this, marketing hype without any substance. 'cloud' computing means nothing, it's just another buzzword and it too will pass.
0 Votes
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The problem isn't managment
mykmlr@... 28th Oct 2010
The problem is shareholder greed and shareholder ignorance.
They don't CARE what does or does not work, just what makes corporate 'news' so share prices will rise.
"We are implementing the latest whiz bang and your stock will be more valuable (when we sell the company)" is the Management Mantra
0 Votes
+ -
The cloud isn't about dollars so start changing
p.hicks@... Updated - 1st Dec 2010
Good post Brian. My CIO is similarly supportive of testing emerging tech to get ready for mass adoption, rather than put out bush fires as 'the business' starts showing up in the doorstep with it.

For those who have seen it go wrong, your IT leaders were chasing the wrong goal. Cloud won't save you money. It will, eventually, set up your business to respond to the social and technological changes that are occurring rapidly. These trends represent a huge shift in economic activity and processes.

Cloud models are still being tested and refined, so faults are to be expected. As the services mature stability and flexibility will be achievable and your IT department will get onboard or go bust, either on it's own or with your lame duck business.
Windows 3.1 had plenty of faults and still created a boom in ICT expenditure because it matched the direction business was heading with technology and information.

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